Canadian Mortgage Study

With historically low interest rates now rising, you may want to consider refinancing or renewing your mortgage now. This newsletter highlights four key things Canadians look for from their mortgage professionals.

Canadians speak out on what's most important to them:


Maritz Research Canada recently conducted a study of 2,000 Canadians. Part of the study focused on Canadians' specific feedback regarding how they choose their mortgage professionals and their experiences with those professionals.

The research concluded that consumers who understand mortgage broker services rated brokers very high compared to other mortgage channels. Consumers also indicated four key things which are important or very important to them when choosing a mortgage professional:

1. 97% of consumers said "The ability to offer low interest rates;" 58% indicated that mortgage brokers had better or much better rates

2. 96% of consumers said "Took time to understand my financial situation;" 46% responded that mortgage brokers were better or much better at understanding their needs; 54% said that mortgage brokers' access to a wide selection of products was better or much better

3. 95% of consumers said "Quality of customer service;" 42% indicated that mortgage broker's customer service was better or much better
4. 94% of consumers said "Mortgage industry knowledge;" 48% said that mortgage brokers were better or much better at helping them understand mortgage options.

The study results suggest that Canadian consumers who refer their family and friends to Mortgage Brokers can help them save money and get better service.

It's Your Career - I'm Here to Support YOU!

Constantine Isslamow -

Mortgage Broker

CENTUM Core Fincial Inc. Brokerage License 10642

Constantine Isslamow License M08005391

Independently Owned & Operated

Friends, followers and Connections are the way of the future.

March 2011 Housing Starts

The seasonally adjusted annual rate of housing starts was 188,800 units in March, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 183,700 units in February 2011.

It's your career, I'm Here To Help You.

Constantine Isslamow
Broker of Record

Century 21 United Realty Inc. Brokerage
705-743-4444

www.constantineisslamow.com

constantine.isslamow@century21.ca

Canadian Mortgages On The Rise

Several of Canada's big banks are raising most of their fixed-term mortgage rates ahead of the busy spring real estate market.

Toronto-Dominion Bank said the biggest increases will be for mortgages with terms of five to 10 years, which will all go up by 0।35 of a percentage point starting this past Tuesday.

The move was matched by Canadian Imperial Bank of Commerce.

Royal Bank of Canada its rates on mortgages for five and 10-year terms by 0.35 or a percentage point, and its seven-year rate by 0.15 of a percentage point.

The posted rate for five-year closed mortgages — one of the most popular types of loans for Canadian home owners — will rise to 5.69 per cent.

The three banks will also raise their rates on one-year, three-year and four-year terms by 0.2 of a percentage point while two-year terms go up 0.3 of a percentage point.

Fixed mortgage rates, which are closely tied to the bond market, tend to climb when traders shift investment activity to riskier equity assets from bonds, which are considered safer।

It’s Your Career – I’m Here to Support YOU!
Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.

That Fixer Upper Might Be More Then You Thought

An online survey of 1,001 Canadians who have purchased a home within the past two years, or intend to buy a home in the next two years, shows that gender plays a role in the selection of new homes vs. 'fixer-uppers'.

More men than women surveyed in the 2011 TD Canada Trust Home Buyers Report preferred fixer-uppers because they are more affordable (14 percent vs. 8 percent) and allow for renovations to suit individual tastes (37 percent vs. 29 percent).

There is a certain romance in popular culture around the ‘do-it-yourself’ renovation, spawned by ads showing smiling, stress-free couples nonchalantly flirting over bowls of cereal in their Euro kitchens or effortlessly applying the latest paint colours to quaint summer cottages; but many who have lived through a major do-it-yourself project will warn that costs can quickly spiral - especially if you're not as 'handy' as you might think.

Ninety-seven percent of all survey participants indicated that cost was the most important consideration in the home buying process. While the price of a fixer-upper may be lower up front, renovations can quickly eat up savings on monthly mortgage payments if you underestimate the price of materials and labour, or have to repair ‘do-it-yourself’ mishaps.

According to a recent report by the Canadian Environmental Law Association, renovations on old homes might even pose risks to your family’s health.

When it comes to selecting a fixer-upper, your best asset is someone with experience in home renovations. Be sure that you understand potential hidden costs before you jump on that attractively-priced gem in the rough.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record -

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.

Canadian Mortgage Rules Change Tommorow

The Government of Canada announced adjustments to the rules for government-backed insured mortgages. These changes are an effort to address concerns about the increasing levels of Canadian household debt. They are designed to ensure that homebuyers don’t risk their financial security by buying more than they can afford.

So what do these adjustments mean to the average homeowner?

Here’s a look at the new rules that were announced by Finance Minister Jim Flaherty:

Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

By reducing the amortization period for new high-ratio mortgages, monthly payments may be more, but Canadians will be able to decrease the amount of interest paid on their mortgages. According to Adrienne Warren, Senior Economist for the Bank of Nova Scotia, the impact of the change to amortization would be relatively modest, at about $100 more per month in carrying costs for an average home.

The new rule takes effect March 18, 2011 and will only affect people buying homes after this date. If you already have a mortgage (either a 35 or 40 year) you should be able to keep it through your renewals.

5% continues to be the minimum down payment.

Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 % from 90 % of the value of their homes.

This new rule is an attempt to promote “saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers”.

This rule also takes effect March 18, 2011

Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit (HELOCs).

According to a Globe and Mail interview with personal finance expert, Rob Carrick, there has been no indication of upcoming changes to how lenders do business. In theory though, by withdrawing government-backed insurance, lenders could start charging higher interest rates on new credit lines or create tougher qualifying requirements.

Home equity lines of credits have been growing in popularity as a borrowing tool and the Federal Government is attempting to slow the growth of this type of borrowing.

This rule takes effect April 18, 2011

No matter what situation you’re in, whether you are a current homeowner or are in the market for a new place, it’s a good idea to take a hard look at your finances and know where you’re money is going.

There are still many mortgage options for homebuyers. Do your research and talk to a Realtor or a mortgage broker to find out what your options are.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record -

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.

first time buyers to seek smaller spaces

High home prices are putting pressure on many first time buyers to seek smaller spaces to save on monthly mortgage payments.

Not all small spaces are created equal; it is important to define your lifestyle needs in addition to square footage when determining monthly payments. What are some features of small spaces that can help to reduce your monthly housing expenses?

The 2011 AVID Design Driver survey is a popular annual report on trends in home buyer preferences, geared towards the building industry. Key findings in this report also offer insight into how home buyers can save money and maximize use of space.

Here are four desirable housing features mentioned in the report that could improve your bottom line simply by design.

Energy Efficiency

High fuel and utility costs can shrink your disposable income. Energy efficiency in heating, cooling and household appliances is increasingly becoming a crucial home design feature. Buying a condo or apartment that is built for utmost energy-efficiency is not only good for the environment: it’s good for your pocketbook.

Functional and Space-Saving Design

First time buyers are increasingly squeezed by the price per square foot of homes, especially in urban centres. But some designers do a great job of making the most of smaller spaces and leaving nothing to waste. A home that makes every inch of space functional for work, rest and entertainment can give you the feel of a larger home for less money.

Entertainment-Friendly Kitchen

Whatever the size of the space, a well-designed, large and open kitchen is a perennial standout for home buyers. An attractive kitchen space will likely encourage you to eat and socialize more at home instead of draining disposable income by dining out. It's also a good resale investment.

Convenient Location

Residential buildings located close to bike and walking routes, shopping and work hubs encourage you to leave your car at home, which can help you to save thousands of dollars annually on vehicle maintenance expenses and fuel costs.

A potentially costly mistake to avoid as a first time home buyer is to rush in to a purchase without first considering your lifestyle, existing monthly expenses and debts, as well as personal plans for the future. Don’t be swayed by attractive selling features that don’t suit your needs or are beyond your affordability ceiling.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Canadians Save by Renewing, Renegotiating Mortgages With Brokers

The Mortgage Broker channel in Canada is highly competitive. Research shows that consumers recently renewing their mortgages with Mortgage Brokers came out way ahead of those renewing with other channels.

Maritz Research Canada recently conducted a study of 2,000 Canadians. The study focused on Canadians' opinions of the mortgage industry and specific feedback on their mortgages and experiences with mortgage professionals.

Those who renewed or renegotiated recently with a Mortgage Broker reported an average rate decrease of 1.4 per cent from posted rates, compared with 1.0 per cent among all renewers. It is easy to understand why Broker market share is 27% on early term renegotiation and has potential to grow much higher.

Just one-third of Canadians say they have a good or full understanding of the services provided by Mortgage Brokers. The importance of awareness is clear: Broker market share is roughly twice as high among those who have a good or full understanding of Broker services when compared with those who have a lesser understanding.

The findings demonstrate that Mortgage Brokers could benefit from better explaining their services to homebuyers in their local communities. Satisfied clients can also help their friends and families to save on mortgage renewals and renegotiations, by passing on their knowledge to alleviate any uncertainty about the Broker process.

The Mortgage Broker channel in Canada is highly competitive. Research shows that consumers recently renewing their mortgages with Mortgage Brokers came out way ahead of those renewing with other channels.

It's Your Career - I'm Here to Support YOU!
Constantine Isslamow
Mortgage Broker
CENTUM Core Fincial Inc. Brokerage License 10642
Constantine Isslamow License M08005391
Independently Owned & Operated
Friends, followers and Connections are the way of the future.